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FXstreet.com (San Francisco) - NZD/JPY is consolidating overnight gains this Thursday in Asia after hitting a 52-month high yesterday, underpinned by a soft Japanese yen on easing expectations and after U.S. lawmakers finally reached a deal to avoid the full impact of falling off of the self-imposed "fiscal cliff".

Spot extended gains above the 71.30 resistance level to peak at 73.10 before concluding the North American session up around 1.7% at 72.82, hitting levels not seen since September 2008.

With little of interest on the economic docket today in Asia, and with markets in Japan and China closed, volatility has been relatively thin across the board, and NZD/JPY has held steady in a tight 40-pip range beneath the 73.00 handle. Should the bullish momentum pick up in the sessions ahead and a sharp rally to levels back above the handle be realized, there may be room to run until 73.95 (Aug 10, 2008 low), then 74.25 (Aug 12, 2007). Bearish targets lie at 71.30 (Dec 17 high) and 69.75 (Oct 18, 2009 high).

NZD/JPY exchanges at 72.57 at the time of writing.

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